Queensland Treasurer Deflects Inflation Blame onto Federal Government Amid Rate Hikes
Queensland Treasurer David Janetzki blamed the federal government for rising inflation and the Reserve Bank’s rate hikes, denying that state spending was a factor.
At the first National Press Club in Queensland, Treasurer David Janetzki placed full responsibility for the recent inflation surge and the Reserve Bank’s 4.6% interest-rate increase on the federal government, specifically naming Finance Minister Jim Chalmers. He argued that the governor’s reference to “domestic capacity pressures” pointed to federal policy, not the state’s own fiscal actions. Janetzki dismissed claims that Queensland’s pre-Olympic infrastructure spending, a 50-cent public-transport fare freeze, and a $100 Back-to-School Boost were fueling price rises, citing the state’s disciplined budgeting and projected surplus by 2030.
They also highlighted Queensland’s projected debt climb to almost $216.5 billion by mid-2030 and the recent downgrade of its credit rating from AA+ to AA by S&P Global. Janetzki defended the state’s productivity gains and said the Olympic venue budget would be tightly managed through competitive procurement.
Why it matters
The dispute over who drives inflation affects fiscal policy, borrowing costs and the state's credit outlook.
How this story developed
- Sep 17 Fed’s Unanimous Rate Hike Signals Hawkish Shift, Sparking Market Unease
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 27 The Reserve Bank of Australia is expected to raise the cash rate to 4.6% on Tuesday, the highest level since 2011, as inflation remains above target.
- Sep 29 The RBA voted to raise the cash rate to 4.6%, its highest in 15 years.
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